5 popular Business loan schemes for women in India
Are you one of those modern Indian women looking to do hard work and to
shape your own career in entrepreneurship? Have you been harboring
entrepreneurial ambitions in your mind for quite some time now? Then it’s
just the right time for you to join the league of entrepreneurs. We will tell
you why.
In modern India, many people are coming into the field of entrepreneurship.
We can see that start-up ventures are fast becoming popular with every
passing day. But, it’s somewhat disheartening to find that not many women
are actually coming out to join the elite league of entrepreneurs.
You may find it hard to believe, but it’s true.
It is widely accepted in business spheres that women are bestowed with more careful business acumen. Hence, they are more likely to succeed in business endeavors than their counterparts from the sterner sex. Therefore, the Government of India, along with various reputed financial institutions and nationalized banks are
providing sbi business loans for women to motivate women entrepreneurs in
India. Such Business loans are not only helping Indian women to start their
own businesses but are also helping women entrepreneurs to expand their
existing businesses. These loans are also helping a large section of Indian
women to attain the much talked about ‘economic independence’.
Here, we will discuss five of the most sought-after business loan schemes for
women entrepreneurs in India-
1. Bharatiya Mahila Bank (BMB)Business loan
The Bharatiya Mahila bank business loan is designed to meet working capital
requirements or to facilitate business expansion by women entrepreneurs.
Some of the salient features of this business loan are mentioned below-
- Women entrepreneurs would get a concession of 0.25 % in the rate of interest
- The applicant should be at least 21 years of age at loan application and should not be over 60 years at loan maturity.
- Co-applicant (Spouse/Parents/Children) are allowed in case of LoanAgainst Property(LAP)
- It is a carefully designed combination of a term loan and a working capital loan
- BMB offers a flexible loan repayment tenure up to a maximum of 84
- months.
- Women entrepreneurs do not need to pledge any collateral if the loan amount is on or below Rs. 1 crore
2. SBI Stree Shakti Business loans
These business loans are meant for those Indian women who want to
start their own business and have at least 50% stake in the proposed
business. Some of the salient features of this business loan are
mentioned below-
- A business loan amount of Rs 50,000 is granted for micro-credit schemes. Loan up to Rs 20 lakhs are provided for businesses related to education, housing and retail trade.
- For loans exceeding Rs 2 lakhs, women entrepreneurs can get a reduction of up to 0.50% on the interest rates.
- In addition to business enterprises in agriculture and related
sectors, retail and micro-credit stores operated by women can
also avail of this scheme.
3. Mudra Yojana Scheme
These loan schemes have been designed for women entrepreneurs looking
to start businesses such as daycare centres, beauty salons, or other such
small and medium business start-ups. The important features of these
business loans are explained below-
- Women entrepreneurs can avail a loan amount in the range of Rs 50,000- Rs 50 lakhs.
- For a loan amount below Rs 10 lakhs, no collateral or guarantor is required.
- A woman can avail these business loans in any of these 3 different
categories-
a. Shishu Plan- These loans are meant to fund existing businesses at
primitive stages. A maximum loan amount of Rs 50, 000 may be
obtained in this plan.
b. Kishor Plan- A business loan for women in this category is meant
to fund already operational or well-settled businesses. However, if a
businesswoman needs financial support at any stage of the
operation, then a loan amount ranging from Rs 50,000 up to Rs 5
lakhs will be granted to her in this scheme.
c. Tarun Plan- A business loan for women in this category is meant
for businesses that are on the verge of expansion. A woman
entrepreneur can apply for a maximum loan amount of Rs 50 lakhs
if she wants to expand her business to new heights.
4. Annapurna scheme
For women entrepreneurs who are running individual businesses or are
engaged with partnership firms, these business loans will be of perfect
help. Some of the important features of this loan are-
- As the name indicates, the Annapurna scheme aims to support the financial needs of women entrepreneurs who want to start a food catering business of their own.
- They can avail a business loan up to Rs 50,000 under this loan scheme.
- The maximum period of loan repayment is 36 months or 3 years with an additional one month as the moratorium period.
- Under this scheme, a woman can get working capital for purchasing kitchen utensils, equipment, water filters and other such items required to start a catering business.
- The rate of interest for these loans can be fixed as per prevailing market rates.
- A guarantor is needed while applying for a business loan under this scheme.
- The woman entrepreneur needs to submit some assets as collateral so that the bank gets some sort of security about
repayment of the loan.
5. Orient Mahila Vikash Yojana
These business loans are introduced by the Government of India to promote
female entrepreneurship. Some of the important features of these business
loans for women are mentioned below-
- If you want business loans under this scheme, you must be havingownership of at least 51% in the business.
- This scheme will fund the costs to start a business with a 2% reduction inthe prevailing interest rates.
- The borrower can choose any repayment tenure from 12 months to 84months.
- You do not need to pledge any collateral if the business loan amount isbeyond Rs 10 lakhs.
- For small scale industries (SSI), no collateral is required if the loanamount is below Rs 25 lakhs.
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